Question 1

What is growth capital?

Accepted Answer

Growth capital is debt financing used to scale an established business — expand into new markets, hire, build inventory, or fund product investment — without giving up equity.

Question 2

How is growth capital different from venture debt?

Accepted Answer

Venture debt is sized to recent equity rounds and targets venture-backed companies pre-profitability. Growth capital underwrites the business's cash flow and is typically used by established, often profitable companies.

Question 3

What rates can we expect on growth capital?

Accepted Answer

Rates vary by lender type and company profile, generally landing between prime+2% (top-tier bank) and the low teens (private credit). 5th Line runs a competitive process to drive rate down.

Growth Capital